Bitcoin continues to trend upward despite price volatility, says Anthony Pompliano

It’s been a couple weeks now since bitcoins having and the price action of the cryptocurrency has been, well, volatile is maybe the word. For more on that in the equity markets, want to bring in Anthony Pompliano, he’s the founder of Pomp Investments. Good morning to you. Good morning. So the having happened, it’s been volatile. I mean we, I don’t know we could put the price up on the screen right now, but there was a period of time, what was the lowest it came down to at 1.57. It’s moved back, but it hasn’t moved back obviously to the heights. What do you make of what’s happening here? Yeah, I I think that the having price action is exactly what we should have expected. Historically it runs up about 19% in the month before and then it only goes up about one 2% in the month after the having. So we’re kind of seeing about that last week. I think that Bitcoin sold off because people are realizing, wait, maybe the US economy isn’t as good as we thought it was, maybe we’re actually not going to get all of these rate cuts. If you look at prediction markets, we’ve seen their pricing in five rate cuts. Now we’re down to one, and if we’re not going to get those rate cuts, is that bad for assets that trade, you know, in a risk environment? And so when we see that, though, all of a sudden we’ve retraced the entire sell off, we’re right back. And one of the most interesting data points is that GBTC, the world’s largest Bitcoin fund, saw 78 straight days of outflows. Once the ECETFS got approved on Friday, it had the first day of inflows about $63 million. And so that doesn’t mean that all of the selling is gone. But for 78 straight days, people were taking money out of that fund. And on Friday they decided to start putting it back. We see the price route. What do you think that says about the overall scheme with with Bitcoin and more importantly, the ETF world? Yeah. So whenever you see the ETF get approved, right. I think everyone was like, oh, these institutions are just waiting to pour capital in. It takes time. They’ve got to go to their investment committees. They got to talk to their clients. They’ve got to go through their processes. And you know fortunately or unfortunately some of them are bureaucratic and it’s going to take some time. And so now we’re starting to see these flows that are persistent that I think people are really excited about. Another data point that’s really important is that Bitcoin, although it is volatile day-to-day, the 200 day moving average just hit an all time high, just crossed over $50,000 for the first time. And so over the long run Bitcoin continues to kind of trend upwards even though on a day-to-day basis that prices last week there was BlackRock was saying they’re starting to see some increased institutional interest in crypto in Bitcoin how how much is how many pension plans for example have Bitcoin now it’s like got to be single digits right? I mean no it’s really not adopted widely by fiduciary types. Is is that coming? I I think that you’ve got to expand the definition of like what exactly falls into that fiduciary bucket. So RIA is definitely are buying this right. If you go and you look at many of the large Wall Street firms they’re buying and you even have BlackRock, Fidelity others putting non Bitcoin funds count to the ETF. No, right. CalPERS, I don’t know if they’re doing it yet, but also I think that the sovereign wealth funds, they definitely are doing this. If you go into around the world, you look at these sovereign wealth funds, they’re trying to get into mining, they’re trying to get exposure to this asset, they’re going to play us out. But real quick, Ethereum, this lawsuit that effectively accuses the SEC of considering their security and then sort of bait and switching everybody. What do you think of that? And what do you think long term means? the United States of America has an amazing court system. And we’ve seen over and over again the SEC and multiple players go to court. They argue it out. Sometimes the SEC wins, sometimes they don’t. I think the judges will figure it out. That’s very political. Not giving us a side here. I don’t know what the answer is. I don’t think most people do.